Monday, April 01, 2013

Here is our Q1 2013 Wealth Builder Ratios update. During the first quarter of 2013, the Dow, Nasdaq and S&P500 indices were up 11.3%, 8.2% and 10.0% respectively. My company stock was also up 13.5%. Our investment portfolio increased in value 11.3 % due almost mostly to the rise in my company stock in Q1. About 10% of the gain was due to the gains in stock inherited from my parents..

This has been an outstanding investment quarter. However, neither the stock market or my company stock can continue to advance at this rate.

I plan to sell some additional shares of company stock in my retirement plan, keeping only the low basis shares in my company retirement for a future NUA execution. I bought back a very small amount near the bottom of the trading range in June 2012 which I have sold at a 15% gain. At this point, I plan to sell all the stock options with an early 2014 expiration during 2013.

(For reference, Salary refers to gross salary just prior to early retirement in October, 2007.)

Both #1 and #2 were directlycorrelated with how well our stock, bond, and CD investments returns. With the very positive performance of my company stock and the high proportion of cash, our portfolio was up significantly.

Although I am pleased with our portfolio results, I am not confident the gains are sustainable. Our short term expenses (next 3-5 years) are invested in CDs, bonds and money markets. I continue to be concerned about volatility of our investment portfolio, and believe there equal downside and upside potential going forward due to EU sovereign debt crisis and the US debt ceiling crisis. So I continue to slowly add funds to the stock market, and hold my company stock and stock options

I continue to have the same financial goals for 2013. At this point, I am slightly optimistic about the economy and the stock market.

For more on Strategies and Plans, check back every Monday for a new segment.

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About Me

My wealth goal is to create a guaranteed yearly income stream equal to my highest salary for my retirement years. While I have developed a strategy to do this,
I am interested how others are thinking of achieving financial security for retirement.
This blog is a summary of facts, ideas, discussions, and action plans to achieve that goal.

Disclaimer

This is a personal blog about my thoughts, experiences and ideas on building wealth. The contents of this blog are for informational purposes only. No content should be construed as financial advice. Commenters, advertisers and linked sites are entirely responsible for their own content and do not represent the views of My Wealth Builder. All financial decisions involve risks and results are not guaranteed. Always do your own research, due diligence and consult your own professional advisor before making any decision. My Wealth Builder assumes no liability with regard to financial results based on use of information from this blog.

If this blog contains any errors, misrepresentations, or omissions, please contact me or leave a comment to have the content corrected.

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Disclaimer:
This is a personal blog about my thoughts, experiences and ideas on building wealth. The contents of this blog are for informational purposes only. No content should be construed as financial advice. Commenters, advertisers and linked sites are entirely responsible for their own content and do not represent the views of My Wealth Builder. All financial decisions involve risks and results are not guaranteed. Always do your own research, due diligence and consult your own professional advisor before making any decision. My Wealth Builder assumes no liability with regard to financial results
based on use of information from this blog.

If this blog contains any errors, misrepresentations, or omissions, please contact me or leave a comment to have the content corrected.